Low Rates + Low Prices + High Rents = Brisk Market

Here we are, nearing the end of summer, and despite the state of the economy, despite the lack of job growth, despite the warnings of impending doom, home buyers continue to buy.

In the first 7 months of 2010, 480 homes were purchased in Folsom. For the first 7 months of 2011, 585 homes were purchased, representing an increase of over 20%.  

Over 100 homes were sold in Folsom in each of the last 2 months. The last time that happened was 2005.  (more…)

34 Acres Bought for Housing

34 acres of commercial land off Parkshore Drive have been purchased by a real estate investment firm, with the hopes of re-zoning to residential. The group hopes to build dense residential homes and is happy about Folsom’s “strong” housing market and proximity to light rail.

Persistance Pays Off for Some

When the government unveiled HAMP (home affordable modification program), it was estimated that up to 4 million borrowers would have their loans modified by rate and/or loan balance reduction thus saving their homes from foreclosure.

Here we are 2 years later, and the latest reports show that only about 522,000 loans were permanently modified and another 792,000 ‘trial modifications’ were cancelled by the banks. The blame for the low success rate is placed on everything from too much red tape to uncooperative borrowers to the fact that the program is voluntary and the banks don’t want to volunteer. (more…)

It’s Gonna Be a Good One

I am an eternal optimist, but I also study the market, I talk to people, and I sell houses, so I know a little of what I speak. Plus, I’ve got this really cool crystal ball… (more…)

The Crazy Myth of Housing Affordability

The good news for buyers is that both home prices and interest rates have fallen to the point that housing is more affordable than ever. The housing market is on sale! Funny thing is, it seems the more affordable the houses the fewer of them sell. (more…)

Short-sale Nightmare, part II

Hey Kids,

In my last post, I talked about the short-sale nightmare of having Bank of America drag their feet and pass the buck on a short-sale for over 7 months before foreclosing and auctioning the property off for $214,000, when they had an initial offer of $310,000. This foot-dragging has killed lots of sales, but some of the banks are getting better.

Today, I want to tell you about another issue you may face if you want to buy or sell a short-sale; the dreaded second mortgage. (more…)

Short Sale Nightmare

Hey Folks, it’s been a while, but I am back and ready to rant, I mean, write. In my last post, I talked a little about short sales and promised more, so here goes.

Short-sales can be a night mare! They aren’t always, and sometimes one can get a much better deal on a short-sale vs. a traditional sale or a bank owned property sale, but sometimes they can lead to great disappointment. Here’s a case in point, the short version. (more…)

Most Banks Still Don’t Have It Together…

For those who don’t know, a short-sale is where the seller of a home owes more than he/she can sell it for, and the bank agrees to settle for less than owed.

As you can imagine, most banks don’t jump at the chance to accept less than you borrowed.

The government is pushing short-sales as an alternative to foreclosures, however, and in fact have created HAFA, the Home Affordable Foreclosure Alternative program. (more…)

Local Real Estate Sales Increase

The first quarter results are in for the Folsom Real Estate market, and they show a marked increase in both closed and pending sales.

The number of ‘pending sales’ (those homes for which a contract has been accepted), was at 54 for January, 74 for February and 106 in March, an increase of 43.2% over March 2009.

The number of closed sales has shown a 37.3% increase over the same period last year, while the number of homes listed for sale has dropped by 23%.

More sales? Less inventory? Does this mean the end is in sight? Are we in a recovery? Is it time to pop the corks? (more…)

A Record Setting April?

So, we knew April would be busy, but I don’t think anyone was prepared for how crazy-busy it actually was.

With the $8000 first-time home buyer and $6500 repeat buyer tax credits set to expire April 30, there was a mad rush of buyers madly rushing to get into contract.

We won’t have the final numbers for another week or so, so I don’t yet know if we’ll set any records, but I think I may have set a few personal bests, or worsts: (more…)